"Will there be some new jobs created? Absolutely - but they will require a niche expertise. Understanding AI and everything which surrounds it will help quite a bit. But remember this - most businesses will trade expensive employees for much less expensive AI technology..."
The monthly jobs report for January is out. Mostly good news. But it had to be explained. Sure, there were 130,000 new jobs added. But it needed some explanation. The number was really 175,000 new jobs. But 45,000 government jobs were also eliminated. That nets out to 130,000 new jobs. Plus (more explanation was needed), many of the new jobs were construction instead of manufacturing. Why? New factories being built in our country. Soon, those construction jobs will morph into manufacturing jobs. Win for MAGA!
But there is a dark side with the jobs report coming. I have been reading many reliable sources which have been saying the same thing. White collar jobs will start going away - quickly. They will be replaced by automation. This morning there was an article by a VP at Microsoft. His view is that in eighteen months, many of the white-collar jobs will be done by automation. That would be AI. The economy will continue to hum along, but finding a white-collar job might be a daunting task.
How is this circle going to be squared in the monthly jobs report? We will still have a strong economy but might have a negative jobs report. Like month after month, we might have negative job reports. And still have a rip-roaring economy. I have said for a while now that Scott Bisset and Howard Lutnick need to prepare the public and the investment class that things might look different (with jobs) starting in 2027. And this jobs mystery will not just happen in America - it will be worldwide.
Will there be some new jobs created? Absolutely - but they will require a niche expertise. Understanding AI and everything which surrounds it will help quite a bit. But remember this - most businesses will trade expensive employees for much less expensive AI technology that does not need to get paid, take sick leave, vacations, lunches, and also does perfect work. Competing with infallible machines is going to be a tall order for most of us.
How is our government going to handle this, with more and more citizens being out of work later this decade? That is a great question, one for which I come up empty. A National Income, where everybody makes enough to live on for doing nothing? Maybe. Whatever it will be, it will be something we have never seen before. Or - this entire AI thing may just be a nothing burger, and things will go on as they always have.
That is the interesting thing about the future - nobody knows until we arrive there. All we can do is enjoy the ride, no matter how bumpy or smooth it might be.
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